MASCO CORP /DE/ - Quarter Report: 2025 June (Form 10-Q)

Operating profit Other income (expense), net: Interest expense()()()()Other, net()()()()()()()()Income before income taxes Income tax expense Net income Less: Net income attributable to noncontrolling interest Net income attributable to Masco Corporation$ $ $ $ Income per common share attributable to Masco Corporation: Basic: Net income$ $ $ $ Diluted: Net income$ $ $ $

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions)


	Three Months Ended June 30,			Six Months Ended June 30,
	2025	2024		2025	2024
Net income	$	$		$	$
Less: Net income attributable to noncontrolling interest
Net income attributable to Masco Corporation	$	$		$	$
Other comprehensive income (loss), net of tax:
Currency translation adjustment	$	$	()	$	$	()
Pension and other post-retirement benefits
Proceeds from the exercise of stock options
Employee withholding taxes paid on stock-based compensation	()	()
Decrease in debt, net	()	()
Net cash for financing activities	()	()

CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	()	()
Acquisition of business		()
Other, net	()	()
Net cash for investing activities	()	()

Effect of exchange rate changes on cash and cash investments		()

CASH AND CASH INVESTMENTS:
Decrease for the period	()	()
At January 1
At June 30	$	$

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)

Total

Common Shares

($ par value)

Paid-In Capital

Retained (Deficit) Earnings

Accumulated Other Comprehensive Income (Loss)

Noncontrolling Interest

Balance, January 1, 2024

()

Total comprehensive income (loss)

—

()

Shares issued

—

Shares retired:

Repurchased

()

—

Surrendered (non-cash)

()

—

()

—

Cash dividends declared

()

—

()

—

Redemption of redeemable noncontrolling interest

—

Stock-based compensation

—

Balance, March 31, 2024

()

Total comprehensive income (loss)

—

()

Shares retired:

Repurchased

()

—

Cash dividends declared

()

—

()

—

Dividends declared to noncontrolling interest

()

—

()

Stock-based compensation

—

Balance, June 30, 2024

()

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Concluded)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)

Total

Common Shares

($ par value)

Paid-In Capital

Retained (Deficit) Earnings

Accumulated Other Comprehensive Income

Noncontrolling Interest

Balance, January 1, 2025

()

Total comprehensive income

—

Shares issued

—

Shares retired:

Repurchased

()

—

Surrendered (non-cash)

()

—

()

—

Cash dividends declared

()

—

()

—

Stock-based compensation

—

Balance, March 31, 2025

()

Total comprehensive income

—

Shares retired:

Repurchased

()

—

Cash dividends declared

()

—

()

—

Dividends declared to noncontrolling interest

()

—

()

Stock-based compensation

—

Balance, June 30, 2025

()

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

percent equity interest in Easy Sanitary Solutions B.V. ("ESS"). The remaining percent equity interest in ESS was subject to a call and put option that was exercisable by Hansgrohe SE or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option was the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and were recorded as temporary equity in the condensed consolidated balance sheets. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit.

In the first quarter of 2024, the sellers exercised their put option to sell the remaining percent equity interest in ESS for € million ($ million). The transaction was accounted for as an equity purchase transaction.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

$ $ International Total$ $ $ Six Months Ended June 30, 2025Plumbing ProductsDecorative Architectural ProductsTotalPrimary geographic areas:North America$ $ $ International Total$ $ $

Three Months Ended June 30, 2024

Plumbing Products

Decorative Architectural Products

Total

Primary geographic areas:

North America

International

Total

Six Months Ended June 30, 2024

Plumbing Products

Decorative Architectural Products

Total

Primary geographic areas:

North America

International

Total

We recognized $ million and $ million of revenue for the three months ended June 30, 2025 and 2024, respectively, related to performance obligations settled in previous quarters of the same year. We recognized $ million of revenue and reversed $ million of revenue for the three and six months ended June 30, 2025, respectively, and recognized $ million of revenue for both the three and six months ended June 30, 2024, related to performance obligations settled in previous years.

Our contract asset balance was $ million at both June 30, 2025 and December 31, 2024. Our contract liability balance was $ million and $ million at June 30, 2025 and December 31, 2024, respectively.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

$ Provision for expected credit losses during the period Write-offs charged against the allowance()()Recoveries of amounts previously written off $

million and $ million at June 30, 2025 and December 31, 2024, respectively, and principally included registered trademarks. The carrying value of our definite-lived intangible assets was $ million (net of accumulated amortization of $ million) at June 30, 2025 and $ million (net of accumulated amortization of $ million) at December 31, 2024, and principally included customer relationships.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

million and $ million at June 30, 2025 and December 31, 2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $ million and $ million at June 30, 2025 and December 31, 2024, respectively.

billion and a maturity date of April 26, 2027. Under the 2022 Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $ million with the current lenders or new lenders.

The 2022 Credit Agreement provides for an unsecured revolving credit facility available to us and one of our foreign subsidiaries in U.S. dollars, European euros, British pounds sterling and certain other currencies for revolving credit loans, swingline loans and letters of credit. Borrowings under the revolving credit loans denominated in any agreed upon currency other than U.S. dollars are limited to the equivalent of $ million. We can also borrow swingline loans up to $ million and obtain letters of credit of up to $ million. Outstanding letters of credit under the 2022 Credit Agreement reduce our borrowing capacity and we had outstanding letters of credit under the 2022 Credit Agreement at June 30, 2025.

The 2022 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than to 1.0.

In order for us to borrow under the 2022 Credit Agreement, there must not be any default in our covenants in the 2022 Credit Agreement (i.e., in addition to the two financial covenants described above, principally limitations on subsidiary debt, negative pledge restrictions, and requirements relating to legal compliance, maintenance of our properties and insurance) and our representations and warranties in the 2022 Credit Agreement must be true in all material respects on the date of borrowing (i.e., principally no material adverse change or litigation likely to result in a material adverse change, since December 31, 2021, no material ERISA or environmental non-compliance, and no material tax deficiency). We were in compliance with all covenants and $ million was borrowed and outstanding at a weighted average interest rate of % at June 30, 2025. Subsequent to June 30, 2025, the entire borrowing was repaid.

billion, compared with the aggregate carrying value of $ billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2024 was approximately $ billion, compared with the aggregate carrying value of $ billion.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

$ $

Operating expenses (B)

Corporate expenses (C)

Segment operating profit

$ $ $

General corporate expense, net (C)

()Operating profit Other income (expense), net()Income before income taxes$

Six Months Ended June 30, 2025

Plumbing Products

Decorative Architectural Products

Total

Net sales (A)

Operating expenses (B)

Corporate expenses (C)

Segment operating profit

General corporate expense, net (C)

()

Operating profit

Other income (expense), net

()

Income before income taxes

Three Months Ended June 30, 2024

Plumbing Products

Decorative Architectural Products

Total

Net sales (A)

Operating expenses (B)

Corporate expenses (C)

Segment operating profit

General corporate expense, net (C)

()

Operating profit

Other income (expense), net

()

Income before income taxes

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

$ $

Operating expenses (B)

Corporate expenses (C)

Segment operating profit

$ $ $

General corporate expense, net (C)

()Operating profit Other income (expense), net()Income before income taxes$


Three Months Ended June 30,		Six Months Ended June 30,
2024
	$


	$


	Assets
	At June 30, 2025	At December 31, 2024
Plumbing Products	$	$
Decorative Architectural Products
Corporate
Total	$	$

(A)Intra-company sales between segments were not material and have been excluded from net sales.

(B)Operating expenses included cost of sales and selling, general and administrative expenses.

(C)Corporate expenses included specific corporate overhead allocated to each segment. General corporate expense, net included those expenses not specifically attributable to our segments.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

percent and percent for the three months ended June 30, 2025 and 2024, respectively, and was percent for both the six months ended June 30, 2025 and 2024.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted. While we are still evaluating the potential implications of the Act, we currently do not anticipate it will have a material effect on our effective tax rate.

$ $ $ Less: Allocation to unvested restricted stock awards Net income attributable to common shareholders$ $ $ $ Denominator:Basic common shares (based upon weighted average) Add: Dilutive effect of stock options and other stock-based incentives Diluted common shares

For the three and six months ended June 30, 2025, basic and diluted income per common share were calculated using the treasury stock method. For the three and six months ended June 30, 2024, we allocated dividends and undistributed earnings to the unvested restricted stock awards.

Number of restricted stock units Number of performance restricted stock units

Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $ billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise. During the six months ended June 30, 2025, we repurchased and retired approximately million shares of our common stock (including million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2025) for approximately $ million, inclusive of excise tax of $ million. At June 30, 2025, we had approximately $ million remaining under the 2022 authorization.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Concluded)

and $ for the three and six months ended June 30, 2025, respectively, and $ and $ for the three and six months ended June 30, 2024, respectively.

$ Accruals for warranties issued during the period Accruals related to pre-existing warranties Settlements made (in cash or kind) during the period()()Other, net (including currency translation and divestitures) ()Balance at end of period$ $


MASCO CORPORATION
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Due to changing market conditions, we are experiencing, and may continue to experience, lower market demand for our products. We have been experiencing, and may continue to experience, elevated commodity and other input costs, as well as employee-related cost inflation. Additionally, we expect the recently-enacted and announced tariffs, particularly those related to China, to result in significantly higher costs to us, principally in our Plumbing Products segment. We seek to mitigate the impact of higher tariffs and other unfavorable impact to our costs over time with pricing, cost savings initiatives, sourcing changes, and other activities. Consumer demand for our products, however, could further diminish if consumer confidence erodes and the price of our products and other consumer goods increases.

We continue to execute our strategies of leveraging our strong brand portfolio, our industry-leading positions and the Masco Operating System, our methodology to drive growth and productivity, to create long-term shareholder value. We remain confident in the fundamentals of our business and long-term strategy. We believe that our strong financial position and cash flow generation, together with our investments in our industry-leading branded building products, our continued focus on innovation and customer service and disciplined capital allocation, will allow us to drive long-term growth and create value for our shareholders.

SECOND QUARTER 2025 AND THE FIRST SIX MONTHS 2025 VERSUS
SECOND QUARTER 2024 AND THE FIRST SIX MONTHS 2024

Consolidated Results of Operations

We report our financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, we believe that certain non-GAAP performance measures and ratios used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, our reported results under GAAP. Within the tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.

The following discussion of consolidated results of operations refers to the three and six months ended June 30, 2025 compared to the same periods of 2024.

NET SALES

Below is a summary of our net sales, in millions, for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		Change		2025		2024		Change
Net sales, as reported	$	2,051	$	2,091	(2)	%	$	3,852	$	4,017	(4)	%

Divestitures	—		(66)				—		(124)
Net sales, excluding divestitures	2,051		2,026		1	%	3,852		3,893		(1)	%
Currency translation	(15)		—				3		—
Net sales, excluding divestitures and the effect of currency translation	$	2,036	$	2,026	—	%	$	3,855	$	3,893	(1)	%

Our net sales for the three months ended June 30, 2025 were $2,051 million, which decreased two percent compared to the three months ended June 30, 2024. Excluding divestitures and the effect of currency translation, net sales were flat primarily due to higher net selling prices of plumbing products which increased sales by two percent, partially offset by lower sales volume of paints and other coating products which decreased sales by one percent.

Our net sales for the six months ended June 30, 2025 were $3,852 million, which decreased four percent compared to the six months ended June 30, 2024. Excluding divestitures and the effect of currency translation, net sales decreased one percent. Our net sales for six months ended June 30, 2025 decreased primarily due to lower sales volume of paints and other coating products which decreased sales by two percent, partially offset by higher net selling prices of plumbing products which increased sales by one percent.

RESULTS OF OPERATIONS

Below is a summary of our results of operations for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,								Six Months Ended June 30,
	2025			2024			Favorable / (Unfavorable)		2025			2024			Favorable / (Unfavorable)
Net sales	$	2,051		$	2,091		(2)	%	$	3,852		$	4,017		(4)	%
Cost of sales	(1,278)			(1,306)			2	%	(2,435)			(2,547)			4	%
Gross profit	$	772		$	785		(2)	%	$	1,416		$	1,470		(4)	%
Gross margin	37.6		%	37.5		%	10 bps		36.8		%	36.6		%	20 bps

Selling, general and administrative expenses	$	(361)		$	(388)		7	%	$	(719)		$	(755)		5	%
Selling, general and administrative expenses as a percent of net sales	(17.6)		%	(18.6)		%	100 bps		(18.7)		%	(18.8)		%	10 bps

Operating profit	$	412		$	397		4	%	$	698		$	715		(2)	%
Operating profit margin	20.1		%	19.0		%	110 bps		18.1		%	17.8		%	30 bps

Three Months Ended June 30, 2025

Our gross profit for the three months ended June 30, 2025 was $772 million, which decreased two percent, and was primarily impacted by higher commodity and tariff costs, three percent due to the divestiture of our Kichler Lighting ("Kichler") business, as well as an increase in other expenses, partially offset by five percent due to higher net selling prices of plumbing products, as well as cost savings initiatives.

Our selling, general and administrative expenses for the three months ended June 30, 2025 were $361 million, which decreased seven percent, and were impacted by four percent due to the divestiture of Kichler and two percent due to lower employee-related costs.

Our operating profit for the three months ended June 30, 2025 was $412 million, which increased four percent, and was impacted by lower selling, general and administrative expenses, partially offset by decreased gross profit.

Six Months Ended June 30, 2025

Our gross profit for the six months ended June 30, 2025 was $1,416 million, which decreased four percent, and was primarily impacted by higher commodity and tariff costs, three percent due to the divestiture of Kichler, two percent due to lower sales volume, as well as an increase in other expenses, partially offset by four percent due to higher net selling prices of plumbing products, as well as cost saving initiatives.

Our selling, general and administrative expenses for the six months ended June 30, 2025 were $719 million, which decreased five percent, and were impacted by the divestiture of Kichler.

Our operating profit for the six months ended June 30, 2025 was $698 million, which decreased two percent, and was impacted by decreased gross profit, partially offset by lower selling, general and administrative expenses.

OTHER INCOME (EXPENSE), NET

Below is a summary of our other income (expense), net, in millions, for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		Favorable / (Unfavorable)		2025		2024		Favorable / (Unfavorable)
Interest expense	$	(26)	$	(26)	—	%	$	(52)	$	(50)	(4)	%
Other, net	(7)		(5)		(40)	%	(14)		(10)		(40)	%
Other income (expense), net	$	(33)	$	(31)	(6)	%	$	(66)	$	(61)	(8)	%

INCOME TAXES

Below is a summary of our income tax expense, in millions, and our effective tax rate for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,							Six Months Ended June 30,
	2025			2024			Favorable / (Unfavorable)	2025			2024			Favorable / (Unfavorable)
Income tax expense	$	(95)		$	(94)		(1)%	$	(150)		$	(154)		3%
Effective tax rate	(25)		%	(26)		%	100 bps	(24)		%	(24)		%	— bps

NET INCOME AND INCOME PER COMMON SHARE - ATTRIBUTABLE TO MASCO CORPORATION

Below is a summary of our net income, in millions, and diluted income per common share for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		Favorable / (Unfavorable)		2025		2024		Favorable / (Unfavorable)
Net income	$	270	$	258	5	%	$	456	$	473	(4)	%
Diluted income per common share	$	1.28	$	1.17	9	%	$	2.15	$	2.14	—	%

Business Segment Results

The following tables set forth our net sales and operating profit information by business segment, dollars in millions.


	Three Months Ended June 30,				Percent Change		Six Months Ended June 30,				Percent Change
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
Net Sales:
Plumbing Products	$	1,312	$	1,253	5	%	$	2,497	$	2,445	2	%
Decorative Architectural Products	738		838		(12)	%	1,355		1,572		(14)	%
Total	$	2,051	$	2,091	(2)	%	$	3,852	$	4,017	(4)	%


	Three Months Ended June 30,				Percent Change		Six Months Ended June 30,				Percent Change
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
Operating Profit:
Plumbing Products	$	275	$	247	11	%	$	492	$	472	4	%
Decorative Architectural Products	157		174		(10)	%	253		299		(15)	%
Total	$	432	$	421	3	%	$	745	$	771	(3)	%
General corporate expense, net	(20)		(24)		(17)	%	(47)		(55)		(15)	%
Total operating profit	$	412	$	397	4	%	$	698	$	715	(2)	%

The following discussion of business segment results refers to the three and six months ended June 30, 2025 compared to the same periods of 2024. Changes in operating profit in the following business segment results discussion exclude general corporate expense, net.

BUSINESS SEGMENT RESULTS DISCUSSION

Plumbing Products

Sales

Net sales in the Plumbing Products segment increased five percent and two percent for the three and six months ended June 30, 2025, respectively. In local currencies (including sales in currencies outside their respective functional currencies), net sales increased four percent and two percent for the three and six months ended June 30, 2025, respectively. For the three months and six months ended June 30, 2025, higher net selling prices increased sales by three percent and two percent, respectively.

Operating Results

Operating profit in the Plumbing Products segment for the three and six months ended June 30, 2025 was positively impacted by higher net selling prices and cost savings initiatives. For the three months ended June 30, 2025, these amounts were partially offset by higher commodity and tariff costs and an increase in other expenses. For the six months ended June 30, 2025, these amounts were partially offset by higher commodity and tariff costs, higher marketing costs, unfavorable sales mix, and an increase in other expenses.

Decorative Architectural Products

Sales

Net sales in the Decorative Architectural Products segment decreased 12 percent and 14 percent for the three and six months ended June 30, 2025, respectively. The divestiture of our Kichler business decreased sales by eight percent for both periods and lower sales volume decreased sales by four percent and five percent for the three and six months ended June 30, 2025, respectively.

Operating Results

Operating profit in the Decorative Architectural Products segment for the three and six months ended June 30, 2025 was negatively impacted by lower sales volume and higher commodity costs, partially offset by cost saving initiatives.

Liquidity and Capital Resources

Overview of Capital Structure

We had cash and cash investments of approximately $390 million and $634 million at June 30, 2025 and December 31, 2024, respectively. Our cash and cash investments consist of overnight interest bearing money market demand accounts, time deposit accounts, and money market mutual funds containing government securities and treasury obligations. While we attempt to diversify these investments in a prudent manner to minimize risk, it is possible that future changes in the financial markets could affect the security or availability of these investments. Of the cash and cash investments we held at June 30, 2025 and December 31, 2024, $276 million and $321 million, respectively, was held in our foreign subsidiaries. If these funds were needed for our operations in the U.S., their repatriation into the U.S. would not result in significant additional U.S. income tax or foreign withholding tax, as we have recorded such taxes on substantially all undistributed foreign earnings, except for those that are legally restricted.

We believe that our present cash balance and cash flows from operations, and borrowing availability under our revolving credit agreement, are sufficient to fund our near-term working capital and other investment needs. We believe that our longer-term working capital and other general corporate requirements will be satisfied through cash flows from operations and, to the extent necessary, from bank borrowings and future financial market activities. However, due to the changing market conditions and its impact on our customers and suppliers, we are unable to fully estimate the extent of the impact that the changing market conditions may have on our future financial condition.

Credit Agreement

On April 26, 2022, we entered into a revolving credit agreement (the “2022 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of April 26, 2027.

Under the 2022 Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders. See Note H to the condensed consolidated financial statements for additional information.

The 2022 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. We were in compliance with all covenants and $46 million was borrowed and outstanding at a weighted average interest rate of 5.551% at June 30, 2025. Subsequent to June 30, 2025, the entire borrowing was repaid.

Other Liquidity and Capital Resource Activities

As part of our ongoing efforts to improve our cash flow and related liquidity, we work with suppliers to optimize our terms and conditions, including extending payment terms. We also facilitate a voluntary supply chain finance program (the "program") to provide certain of our suppliers with the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The amounts confirmed as valid under the program and included in accounts payable were $44 million and $36 million at June 30, 2025 and December 31, 2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $26 million and $23 million at June 30, 2025 and December 31, 2024, respectively. All payments made under the program are recorded as a decrease in accounts payable and accrued liabilities, net, in our condensed consolidated statements of cash flows. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the program. We do not believe such risk would have a material impact on our working capital or cash flows, as substantially all of our payments are made outside of the program.

Share Repurchases

Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise. During the six months ended June 30, 2025, we repurchased and retired approximately 3.4 million shares of our common stock (including 0.3 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2025) for approximately $233 million, inclusive of excise tax of $2 million. At June 30, 2025, we had approximately $666 million remaining under the 2022 authorization. Consistent with our past practice and as part of our long-term capital allocation strategy, outside of any potential acquisitions, we anticipate using at least $450 million of cash for share repurchases in 2025.

Cash Flows

For the six months ended June 30, 2025, net cash provided by operations was $148 million, primarily driven by operating profit, partially offset by changes in working capital.

For the six months ended June 30, 2025, net cash used for financing activities was $344 million, primarily due to $231 million for the repurchase and retirement of our common stock, $132 million for the payment of cash dividends, and $15 million for dividends paid to noncontrolling interest, partially offset by $46 million of net proceeds from revolving credit loan borrowings.

For the six months ended June 30, 2025, net cash used for investing activities was $70 million, primarily driven by $68 million of capital expenditures.

Cautionary Statement Concerning Forward-Looking Statements

This Report contains statements that reflect our views about our future performance and constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "outlook," "believe," "anticipate," "appear," "may," "will," "should," "intend," "plan," "estimate," "expect," "assume," "seek," "forecast," and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.

Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tariffs, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology.

These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.


MASCO CORPORATION
Item 4.
CONTROLS AND PROCEDURES

a.Evaluation of Disclosure Controls and Procedures.

The Company's Principal Executive Officer and Principal Financial Officer have concluded, based on an evaluation of the Company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) as required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15 that, as of June 30, 2025, the Company's disclosure controls and procedures were effective.

b. Changes in Internal Control over Financial Reporting.

In connection with the evaluation of the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2025, which is required under the Securities Exchange Act of 1934 by paragraph (d) of Exchange Rules 13a-15 or 15d-15 (as defined in paragraph (f) of Rule 13a-15), management determined that there was no change that materially affected or is reasonably likely to materially affect internal control over financial reporting.

During the second quarter of 2025, we upgraded the enterprise resource planning system in one of our operating units within our Plumbing Products segment. The current system was upgraded to a newer version and was not in response to any identified deficiency or weakness in the Company's internal control over financial reporting.

MASCO CORPORATION

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings involving us is set forth in Note L to our condensed consolidated financial statements included in Part I, Item 1 of this Report and is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors of the Company set forth in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information regarding the repurchase of our common stock for the three months ended June 30, 2025 under the 2022 share repurchase authorization:


Period	Total Number Of Shares Purchased	Average Price Paid Per Common Share		Total Number Of Shares Purchased As Part Of Publicly Announced Plans or Programs	Maximum Value Of Shares That May Yet Be Purchased Under The Plans Or Programs
4/1/25 - 4/30/25	769,181	$	62.41	769,181	$	718,338,214
5/1/25 - 5/31/25	119,195	$	62.93	119,195	$	710,837,079
6/1/25 - 6/30/25	715,902	$	62.87	715,902	$	665,830,484
Total for the quarter	1,604,278	$	62.65	1,604,278	$	665,830,484

Item 5. Other Information

Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements

During the three months ended June 30, 2025, none of our officers or directors or any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.

MASCO CORPORATION

PART II. OTHER INFORMATION, Continued

Item 6. Exhibits


1 0.a						Severance and Release Agreement dated July 8, 2025 between Masco Corporation and Keith J. Allman.
1 0.b						Aircraft Time Sharing Agreement dated July 25, 2025 between Jonathon J. Nudi and Masco Corporation.
31.a						Certification by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
31.b						Certification by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
32						Certifications required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101						The following financial information from Masco Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Shareholders' Equity, and (vi) Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

MASCO CORPORATION

PART II. OTHER INFORMATION, Concluded

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.


			MASCO CORPORATION
			By:			/s/ Richard J. Westenberg
						Richard J. Westenberg Vice President, Chief Financial Officer and Treasurer

July 31, 2025

MASCO CORP /DE/ - Quarter Report: 2025 June (Form 10-Q)

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